HUNTINGDON VALLEY, Pa., Nov. 4, 2010 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced unaudited third quarter results ending September 30, 2010.
The Company reported third quarter revenue of $5,223,000 compared to $4,530,000 for the same period in fiscal 2009 or an increase of 15.3%.
(Loss)Income from Operations-third quarter
The third quarter loss from operations was $76,000 for '10 $(.02) vs. income of $204,000 $(.05) for '09.
Net (Loss) Income Comparison-third quarter
The Company had 2010 third quarter net income of $119,000 $(.03) per share, compared to net income of $330,000 or $(.08) per share in the same period for 2009.
The major difference between loss from Operations and reported Net Income for the September quarter was caused by an increase in the value of the Company's investment in Marketable Securities in 2010 and 2009 of $249,000 and $327,000, respectively.
The Company reported nine month revenue of $14,984,000 compared to $13,674,000 for the same period in fiscal 2009, or a net increase of 9.6%.
(Loss) Income from Operations-nine months
The nine month loss from operations was $89,000 or $(.02) per share compared to income of $670,000 in 2009 or $.16 per share.
Net Income Comparison—nine months
The Company showed net income of $167,000 or $(.04) per share in 2010, compared to net income of $728,000 or $(.18) per share in 2009.
The major difference between Loss from Operations and reported Net Income was caused by an increase in value of the Company's investment in Marketable Securities in 2010 and 2009 of $306,000 and $574,000, respectively.
Key Financial Comparisons
The Company had working capital of approximately $7.3 million, up from $7.3 million at September 30, 2009. The Company has no debt, and total Shareholder equity has reached approximately $7,800,000 as of September 30, 2010. The equity total was effected by a dividend of $.10 per share totaling $400,000 which was paid out during the June 2010 Quarter.
Steve Rade, CEO, stated, "We had another quarter of good sales growth as we showed an increase of approximately 15% for the quarter by expanding our OEM product offerings and promotions and offering aggressive pricing to match our competitors which lowered our gross profit percentage. Unfortunately, our third quarter operating income fell from $203,000 in 2009 to a loss of $76,000 in 2010. The drop in our gross margin percentages affected our operating income but the main cause of our income decline was attributable to the implementation of new business software in early May 2010 which fell far short of vendor promises and assurances relating to system performance and functionality. This has resulted in a continuing amount of valuable management and staff time and attention being diverted from selling customers and managing operations to focusing on fixing numerous problems and performing basic functions while coping with unacceptable response times. Though we have made some progress in the past few months we still have a lot of issues to resolve and far to go before we start enjoying some of advertised the benefits of the system.
Meanwhile, the Company is still incurring extra expenses in terms of overtime, paying for vendor fixes and modifications in order to achieve the basic functionality of the system.
The Company is putting in a massive effort in terms of time and expense and has put maximum pressure on our vendor to get it right and we hope to see serious improvement by the end of the this year.
About Wireless Xcessories Group
Wireless Xcessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The Company offers in excess of 3,000 items that include batteries; hands free devices, car and travel chargers, as well as a variety of carrying cases. The Company sells to dealers and distributors through an in-house sales force and directly from its website, .
CONTACT: Wireless Xcessories Group Dan Kenderdine 800-233-0013 ext. 1404